How Much Does My Health Insurance Cost?
August 08, 2007
Health insurance is a benefit often taken for granted – until you experience a health problem requiring costly treatment.
Nearly 50 years ago employers in America sought to lessen the demands for higher wages by offering other benefits. Health insurance was one of these benefits and it was inexpensive in the ‘50s and ‘60s. Medicare was enacted in the 1960’s extending healthcare to millions of senior citizens and soon most people had some paid health coverage.
Recent surveys among employee groups suggest that many employees think their health insurance is affordable. Here at Arizona State Government, employees pay very little for an outstanding package of health benefits. Can you estimate the value of your health insurance? Depending on your “tier”-- employee only, employee plus one, or family, the State pays between $5,200.00 and $19,000.00 per year over and above your health insurance contribution. If this seems like a lot of money – it is! The State recognizes the value of healthy employees.
This year the Department of Administration received approval for a new tier of coverage: employee plus one dependent. People often ask, “What took you so long?” This is a fair question. It took time to build support for this new tier and gain commitment for the changes. First, we had to get more accurate data on our costs of services, and second, a solution had to be created to accommodate the increased costs of insurance in general as well as the cost of the middle tier. We estimate the middle tier will cost between $9 – 11 million in addition to the normal inflation seen in medical rates.
Employees who previously paid $125 per month for two people can now pay $50 per month. There are some employees who could not afford the $125 per month who can now add one dependent for the $50 monthly premium. Therefore, we are likely to add even more employees and/or dependents to our membership.
In order to recover some of the additional costs and to cover general inflation, we made some adjustments in the plan design to help our members make more effective and more economical health care decisions. Among these changes are targeted changes to certain types of co-pays and the addition of programs—such as smoking cession—to reduce long-term plan costs.
The Department of Administration is working to keep benefits robust while controlling costs to both employees and the State. You can assist us by exercising good judgment as a healthcare services consumer. You can also review your healthcare statements or “Explanation of Benefits” to make sure you are charged for only the services you receive.
Another way you can help is to remain healthy. If you did not participate in the Health Risk Assessment this year, be sure to do so next year. You can also go to our Wellness website (www.benefitoptions.az.gov/wellness) to find screenings and wellness events near you, or enroll in one of the Mayo Clinic web programs available through the State of Arizona EmbodyHealth web portal (www.bewellstaywell.az.gov).
We want to enlist your help in keeping current and future healthcare affordable. Be sure to read your Open Enrollment booklet and choose wisely. We hope you take advantage of the positive changes to the health plan and have good health throughout the coming Plan year. |
